“Wall Street comes for Bitcoin.”
That phrase used to awaken hope and fear in cryptography circles. Today, it is no longer a future threat or a bullish promise, it is only reality.
Bitcoin’s original premise (or crypto in general)—A asset that is resistant to censorship and does not respond to any financial institution or traditional government, quickly fades like Wall Street Giants (as well as powerful political figures) Continue to establish your strong support point in the digital asset space.
During the first years of the revolution of digital assets, Bitcoin was held as not correlated and without apologies against the establishment. Tradfi asset classes like S&P 500 would rise and fall: Bitcoin didn’t care.
What mattered Bitcoin were the defects in the traditional financial system, which are still here to this day.
An important example in the history of BTC that is no longer carved is the Banking crisis Cyprus 2013.
The crisis, which occurred due to the overexposure of the banks to the supercharged local real estate companies and in the midst of the European debt crisis, saw deposits of more than 100,000 euros a substantial haircut has been cut.
In fact, 47.5% of the undeired deposits were seized. Bitcoin’s response was to move sharply upwards, for the first time in its history, cross the threshold of $ 1,000.
After a prolonged bearish market on the collapse of Mount Gox, the idea of mass adoption grew, with the entrance of Wall Street in the sector seen as a validation seal for Bitcoin, since it meant more liquidity, mass adoption and price maturity.
That changed everything.
The price could have matured, as evidenced by diminishing volatility. But let’s be sincere: Bitcoin is now just another macro risk asset.
“Bitcoin, once held for its low correlation with conventional financial assets, has increasingly exhibited more sensitivity to the same variables that promote capital markets in time deadlines,” said Nydic Research in a report.
In fact, the correlation is now around the upper end of the historical range, according to Nydig’s calculations. “Bitcoin’s correlation with US actions remained high until the end of the quarter, closing at 0.48, a level near the upper end of its historical range.”
In a nutshell, when there is blood on the street (Wall Street that is)Bitcoin bleeds too. When Wall Street sneezes, Bitcoin was replaced.
Even Bitcoin’s “Digital Gold” nickname is under pressure.
Nydig points out that Bitcoin’s correlation with physical gold and the US dollar is close to zero. Too much for the argument of “coverage”, at least for now.
Risk active
So why change?
The answer is simple: for Wall Street, Bitcoin is just another risk asset, not digital gold, which is synonymous with “safe refuge.”
Investors are reproducing everything, from the penalty of the Central Bank to the geopolitical tension, the digital assets included.
“This persistent correlation force with US actions can be greatly attributed to a series of macroeconomic and geopolitical developments, tariff agitation and the growing number of global conflicts, which significantly influenced the feelings of investors and the reproduction of assets in the markets,” Nydig said.
And we like it or not, this is here to stay, at least for a medium term short.
While the policy of the Central Bank, the macro and the red headlines linked to the war reach the tape, Bitcoin will probably move along with the actions.
“The current correlation regime can persist while the feeling of global risk, the policy of the Central Bank and the geopolitical inflammation points remain dominant market narratives,” said Nydig’s report.
For long -term maxis and headlines, the original vision has not changed. The limited supply of Bitcoin, access without borders and decentralized nature remain intact. Do not expect that they affect the price action yet.
For now, the market sees Bitcoin as another sharing ticket. Simply balance your commercial strategies accordingly.
